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Baseline Definition of e-Marketing: “…identifying, understanding, collaboratively creating, and meeting a segment of human and social needs, wants, desires, wishes digitally.”

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  2. Topic: Internet Marketing  E-Marketing vs. marketing  Internet demographics  Advantages  New contagions of information  Impact on Product Mix  New innovation paradigm 2
  3. First A Few Facts  E-Marketing ≠ sales  Marketing plan ≠ e-Marketing plan  Most organizations have no:  Marketing strategy  Marketing plan  e-Marketing plan  Brand advocacy strategy  Good news: The Internet keeps on growing  Bad news: Getting harder to be found 3
  4. Baseline Definition of e-Marketing “…identifying, understanding, collaboratively creating, and meeting a segment of human and social needs, wants, desires, wishes digitally.” Adaptation of Philip Kotler’s original definition of marketing. 4
  5. Customer Integrated Into Process BEFORE AFTER Supplier Customer Internet Customers Supplier Monologue Dialogue One way One-to-one marketing Mass communication Real-time Static Dynamic No interaction among customers Collaborative Shotgun approach Segmented Hard to identify customers Rich customer interaction Hard to manage customers Rich customer data 5
  6. E-Marketing: More Than Just Your Website Outsource Partners Other Blogs Other Blogs Admin portal ­ Regional Branded  ­ Agent  ACME site communities ­ By industry ­ By application ­ Regional ­ Portals Site linking ­ By industry ­ By application Industry ­ Portals PORTAL ­ Verticals Partners Forum A A Search engines ­ Regionally B ­ Worldwide B C Business resource Hubs C Small businesses First time visitors from search engines. B2B partners 6
  7. Global Online Population  Currently about 1.2 billion  Projected to grow to 1.8 billion by 2010 7
  8. Websites Worldwide 70 million blogs in just In May 2007, the number reported 4 years. was a little over 118 million 120K blogs worldwide being added each day. Netcraft November 2006 survey 8
  9. U.S. Online Ad Spending: 5.9% of the $285 billion total U.S. advertising market in 2006 $16.9 Source: Wall Street Journal, May 25, 2007, pg. B1 9
  10. Advantages  Democratization of advertising  Reach: Collapsing barriers of time & space  Lower risk of product / services innovation  Lower cost / higher ROI  Digitization of all information  Virtual supply chains  Virtual markets  Virtual real-time interaction with customers & suppliers  Scalability  Ability to coalesce and reach increasingly fragmented markets  Streamline business process 10
  11. Strategic Advantages  Create new sources of competitive advantage  More direct distribution model  Reengineer the supply chain  Invent new business models  Target underserved segments  Lower price barrier  New delivery methods to reduce capital expenditure and pricing  Create more efficient marketplace  Create a “virtuous cycle” 11
  12. Benefit of Creating A “Virtuous Cycle”  Reduce the risk of guessing by letting the community define the need, want, problem, and value proposition  Speed development cycles  Create precise features / value  Create brand advocates  Community endorsement Community and feedback loop integral  part of shaping product 12
  13. Recognize Elements of Value Creation: Generic Value Chain Visual representation of what organizations do to create value. Margin is the difference between Customer Perceived Value (CPV) and cost. The primary and second activities attribute to cost. Cost + Profit = $ Price (Customer Perceived Value) Support Activities Firm Infrastructure Human Resources Ma r gin Technology Development Procurement Marketing Inbound Outbound in Operations & Service rg Logistics Logistics Sales Ma Source: Porter’s value chain Primary Activities 13
  14. Traditional Industry Supply Chain Look to bypass intermediaries. Production based value Commerce based value creation. creation. (transforming inputs (arbitrage) into outputs) SERVICE VAR OEM End User PROVIDER Reseller Value Chain Value Chain Value Chain Typical Service Provider Supply Chain Each entity looks very little beyond the next partner in the food chain. Incremental value added. 14
  15. Rearrange Your Supply Chain: Create More Strategic & Symbiotic B2B Relationships Build more strategic & symbiotic value chain.  Think in terms of solving the common objectives, interests, and obstacles.  Pursue common challenges. OEM  Pursue common goals. Value Chain  Remove common obstacles.  Achieve collective profitability G  How? Service O  By removing inefficiencies and duplicity of efforts in each discrete Provider A End User value chain. Value Chain L  Collaborate together to link strategies, validate new applications, how to market them, how to price them, and how to launch them, VAR  The basic principle is to leverage, Reseller link, and coordinate resources at a Value Chain strategic level towards achieving the Reduce duplicity same fundamental goals. Reduce costs Leverage resources Increase value 15
  16. Disintermediate Look for new ways to disintermediate the supply chain. New players like are disintermediating the old supply chain. In doing so, converting cost Internet $ cost savings as a source of competitive advantage. Web Centric Value Chain $ cost $ cost $ cost Service OEM Reseller End User $ Price Provider Value Chain Value Chain Value Chain Leverage business models or disintermediate to capture sources of competitive advantage. ASP, On Demand, or B2B relationships to capture cost savings and revenue sharing. Every step along the way (middleman or channel) is a cost point. Each step that can be optimized means a cost savings that can contribute to more competitive offering. 16
  17. Baseline Guidelines  Create an E-marketing plan  Choose top level domain name early  Choose & trademark branded domains  Design & linkage  Relationship of all internal websites to target customers, industry sites, suppliers, business sites, portals, blogs  Infrastructure: Who will host sites, applications, and associated servers  SEO plan and strategy for your websites  Indexing  Real-time analytics  Communication utilities  E-mail, IM, real-time voice, weblogs  E-mail list management and opt in / out best practice (CAN-SPAM ACT)  Online advertising or “soft branding”  E-commerce site  Drive traffic 17
  18. New Paradigm  Sell your idea first  Find your actors (audience) first  Size does not matter - PlentyOfFish  Reduce risk by pushing control out  Value creation increases at the edge  Decentralize authority, process, and IP  Transparency creates value  Truth travels fast  Price alone is not sustainable  Reengineer your value chain  Skip intermediaries wherever possible  Reinvent your business models  Change the status quo 18
  19. Impact on Product Mix  Product / service strategy  Shared risk through open collaboration  Place (channel)  Actors & marketspace  Agents  Pricing  Hypercompetitive  Convert traffic to advertisement revenue  Promotion  Community  Customer support  24 X 7  Virtual  FAQ, forums, electronic 19
  20. Almost no feedback Old 4Ps Paradigm loop. Higher risk of innovation and guessing market. Value Creator Customer Product Place Pricing Promotion 4Ps 20
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